2. INVESTORS TAKING PROFITS/CLAIMING LOSSES BEFORE TAX SEASON
The bitcoin cash war split the currency into two and crashed the market. Photocredit: Getty. Bitcoin is the dominating crypto currency. The recent crash only managed to get its price back to where it was last December, which means it is still profitable compared to a few years ago. Yet the digital currency that started it all suffers from some serious flaws, from volatility to its core algorithms.
There have been many speculations around the cause: some suggest the massive sell-offs , while others point to news around Goldman Sachs abandoning plans to launch a crypto currency trading desk. Some simply suggest that since many bitcoin investors are young adults, they want to cash in before college. Another theory is the fear of huge capital gain taxes.
But before all of these, we had the bitcoin cash split. Unlike regular centralized software, where a company owns a product and can upgrade it anyhow it likes, decentralized protocols such as bitcoin rely on several thousands of nodes, each of them having a version of that software installed.
And there is no central place to automatically upgrade them like Playstore as that would defeat the purpose of decentralization. For this reason, all nodes must agree on the best way to go forward. This is what happened to bitcoin cash. As bitcoin adoption was increasing, the scalability problem had to be solved. In return, the one who solves the algorithm is rewarded in bitcoin.
To solve the problem of scalability, the community had to make a choice. It was an issue of centralization vs. The community could not agree, and bitcoin cash was born as the alternative which could process more transactions per second. To keep it simple, both factions had different views on how bitcoin cash should proceed, with one of the debates circulating around the block size.
When a crypto currency splits, the users on the old chain double their coins, as they receive a similar amount of coins on both sides of the chain. Bitcoin SV initially refused to implement this feature.
For now, it seems like bitcoin ABC has won the civil war, but the entire crypto community has paid the price. Bitcoin did a great job in introducing crypto currencies to the world. It seized the right moment after the financial crisis, and became the first and biggest digital currency. Yet, it has many flaws: volatility, scalability and the power-hungry algorithm are some of them. For these reasons, we now have stablecoins and third and fourth generation blockchain projects which rely on totally different algorithms some that rely on RAM instead of CPUs.
Bitcoin probably cannot become a mainstream payment mechanism, but it has paved the way for other digital currencies. If its flaws are not fundamentally resolved, it might lose its dominating position.
I'm a developer and freelance tech blogger interested in cyber-security, AI and blockchain, and try to separate signal from noise in the industry. Share to facebook Share to twitter Share to linkedin. Photocredit: Getty Getty. David Petersson.
1. NEGATIVE NEWS
Cookies are used on this Website. This is necessary in order to remember your preferences, as well as to collect analytical data about visits to the Website. Use of our Website means that you agree to the use of all cookies and analytics of Website visits in accordance with Bitnewstoday. Possible deanonymization caused a violent commotion among the users, but everyone forgot somehow about the main threat of such attacks for the entire bitcoin network. The history of dust attacks began in when spam from tens of thousands of tiny microtransactions filled all the blocks completely. However, the developers were aware of this danger much earlier. So how dangerous is the actual threat of a dust attack for users and what is a global damage from it throughout the bitcoin network? Recall that UTXO as unspent transaction output actually is the basis of bitcoin network, which provides a mechanism for payments accounting.
People asking how to list their tokens on https://t.co/HdSEYi9krq:— John McAfee (@officialmcafee) October 11, 2019
1. Press "ADD TOKEN" at top of page
2. Enter tech details of token, etc.
3. Press Enter
4. You are instantly listed
We want to make it simple, natural and innocent - not just DEX, but the entire world of Crypto.
Source: TradingView The drop occurred hours before the what triggered bitcoin crash close of the BitMEX perpetual contract, which reflects the price of bitcoin on major spot exchanges. Most analysts triggerwd attributed the drop to the close of the CME bitcoin futures contract, which previously has marked several pullbacks for the dominant cryptocurrency. Some of those positions will be rolled but overall institutional investors have been looking elsewhere in August! As noted by the Skew research teampossibly due to the lack of volume in the market, the CME bitcoin futures market has also shown little interest from institutions.
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Dust attacks - stress tests for bitcoin network
Related Tags. Bitcoin probably cannot become a mainstream payment mechanism, but it has paved the way for other digital currencies. Some bitcon, famous investors, and finance professionals warned that rapidly increasing cryptocurrency prices could create a burst of the "bubble. What's behind the latest Bitcoin crash? This is Why Bitcoin is Going Up. For these reasons, we now have stablecoins and third and fourth generation blockchain projects which rely on totally different algorithms some that rely on RAM instead of CPUs. This is what happened to bitcoin cash. As bitcoin adoption was increasing, the scalability problem had to be solved. The decline in sales has been seen as an indicator of a fall in levels of interest in crypto mining.